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A List of Income Tax Rates for Each State, it income tax.#It #income #tax

State Income Tax Rates

Ever wonder how your state s income tax rates compare to other states? You ll find some of the highest rates in California, Hawaii, New Jersey, New York and Oregon. At the other end of the scale, seven states have no income tax at all. Another eight have a flat tax rate – everyone pays the same rate regardless of income.

States With No Income Tax

Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not impose an income tax.

Tennessee and New Hampshire fall into a gray area. They don t levy an income tax on wages, so if this is your only income, you re in the clear. They do tax interest and dividends, however, New Hampshire at a rate of 5 percent and Tennessee at 6 percent.

Tennessee gets you in other ways. It has one of the highest sales tax rates in the country at 9.46 percent. Your paycheck may be safe, but you ll be dinged at the cash register. And New Hampshire is known for its exorbitant property taxes. Texas and Nevada have high property taxes, too. Washington charges a significant tax on gasoline, and Florida is known for both high property taxes and a pretty significant sales tax. Wyoming and Alaska are the kindest states, at least for resident tax payers. They take in a lot of revenue from taxation of their natural resources.

States With Flat Tax Rates

Among states that do have income taxes, many residents get a break because the highest rates don t kick in until certain income levels – these states have progressive tax rates.

California s top rate is 13.3 percent as of 2016, but only if you earn $1 million or more. If you earn $50,000 a year, you ll only pay 9.3 percent.

But this isn t the case with the eight states that have flat tax rates. These jurisdictions don t care how much you earn. If you bring in $5,000 a year, you ll pay the same percentage as the guy who earns $5 million.